Slide 1: Cover letter to stock exchanges: Presentation on ITC Hotels
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Fax : 91 33 2288 4016 / 1256 / 2259 / 2260 25th November, 2024 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of India
Slide 2: cc: Securities Exchange Commission
cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: ITC Hotels Investor Presentation
Wl ITC HOTELS RESPONSIBLE LUXURY fx Investor Presentation CLUBE3ITC ce MA W © storm reaune eo RESPONSIBLE LUXURY MEMENTOS WELCOMHOTEL — ey irenores — Member IT's hot! group WelcomHeritage
Slide 4: Disclaimer
Disclaimer The information contained in this section pertains to the Hotels Business of ITC Limited (Company), which will be demerged to ITC Hotels Limited on the Effective Date in accordance with the provisions of the Scheme of Arrangement sanctioned by the NCLT, Kolkata bench. This section also co
Slide 5: Who We Are
Who We Are 3 3
Slide 6: ITC Hotels
ITC Hotels 140 90+ Hotels Destinations Launched in 1975, ITC Hotels is India’s Pre-eminent Hospitality Chain, embodying the essence of ~13,000 6 Distinct Hotel Indian Hospitality & Sustainability Keys Brands Iconic F&B Cuisine Strong and Brands partnerships Greenest Hotel Chain Robust operational in
Slide 7: ITC Hotels India's Pre-eminent Hospitality Chain
ITC Hotels India’s Pre-eminent Hospitality Chain Luxury Upper Upscale Boutique Mid to Upscale Heritage ITC Maurya, New Delhi ITC Narmada, Ahmedabad HOTELS THAT DEFINE THE DESTINATIONS 5 5
Slide 8: Current Operating Footprint
Pan India Presence 2023 Best Luxury Current Operating Footprint 6 1 Existing Hotels Hotel Chain ITC Hotels Hotels in pipeline 140 Hotels 6 18 3 9 8 Travel + Leisure India's Best Awards ~13,000 Keys 6 4 1 1 1 1 (Owned / Managed Mix By % Keys : 45% / 55% ) 14 6 6 5 2024 Best Organization 13 2 5 2 for
Slide 9: Well Balanced Brand Portfolio
Well Balanced Brand Portfolio 38% 23% 32% 7% 18 Hotels, 4900 Keys 32 Hotels, 3000 Keys 55 Hotels, 4100 Keys 35 Hotels, 1000 Keys Status as on 31st Oct ’24 | Figures rounded off to nearest 100 7 7
Slide 10: Iconic Hotels
Iconic Hotels ITC Grand Chola, Chennai ITC Kohenur, Hyderabad ITC Maratha, Mumbai ITC Royal Bengal, Kolkata ITC Maurya, New Delhi ITC Narmada, Ahmedabad ITC Gardenia, Bengaluru ITC Grand Goa 8 8
Slide 11: Representing India's Heritage and Culture
Representing India's Heritage and Culture ITC Hotels are an archetype of the culture and ethos of each destination offering unique value propositions and indigenous experiences ITCITC Grand Bharat Maurya, ITC Maratha ITC Sonar ITC Grand Chola Gurugram New Delhi Mumbai Kolkata Chennai Symbolizes the
Slide 12: One Unifying Symbol Embodying Indian Hospitality
One Unifying Symbol Embodying Indian Hospitality NAMASTE More than a Symbol, An Acknowledgement of Atithi Devo Bhava A Mark of Pride in being your host, An Assurance of your Welfare A Commitment to Enriching Memories An Icon for Responsible Luxury A Unifying Sign of the Diversity of ITC Hotels 10 10
Slide 13: Signature Cuisine Brands
Signature Cuisine Brands 11 11
Slide 14: Signature Cuisine Brands: Timeless Dedication to Authenticity
Signature Cuisine Brands Timeless Dedication to Authenticity Bukhara, a global award-winning restaurant at ITC Maurya, New Delhi, an icon of culinary heritage celebrates 45 glorious years of timeless flavours and cherished memories Best Restaurants in the World Bukhara, ITC Maurya Condé Nast Travele
Slide 15: Signature Cuisine Brands: Progressive & Reimagined Tastes
Signature Cuisine Brands Progressive & Reimagined Tastes A first-of-its-kind open kitchen that culminates in an exclusive blend of South Indian delicacies that are both traditional and progressive, and served in a sophisticated ambience #1 Avartana, ITC Grand Chola Condé Nast Traveler TOP Restaurant
Slide 16: Showcasing India's culinary heritage
Showcasing India's culinary heritage Official F&B partner for G20 Summit in 2023 Largest and most exclusive catering in the history of Indian Hospitality 14 14
Slide 17: Globally Acclaimed Wellness Experiences
Globally Acclaimed Wellness Experiences ITC Hotels Highly Acclaimed Spa Brand Home to India’s Rich Therapeutic Legacies Best Luxury Best Hotel Spa Spa ITC South – Maratha, Kaya Kalp, ITC Mumbai Kohenur Today’s Traveller The Global Awards Spa Awards Most glamourous Best Luxury Spa wellness Spa in ‘Ka
Slide 18: Global Exemplar in Responsible Luxury
Global Exemplar in Responsible Luxury Integrating Luxury with Sustainability All Owned Hotels certified LEED Platinum® Largest chain in the world to achieve this feat World’s first 12 Hotels to receive Carbon LEED® Zero Carbon Certification World’s first 5 Hotels to receive Water LEED® Zero Water Ce
Slide 19: Sustainability 2.0 Agenda
Sustainability 2.0 Agenda 2030 Sustainability Goals Net Zero Carbon Goal LEED® Zero Carbon status for all Owned Hotels To exceed 2050 GHG sectoral emissions targets set as per COP 21 Waste Reduction Solid waste reuse / recycling > 99% Water Efficiency LEED® Zero Water Status for > 50% of Owned Hotel
Slide 20: Leveraging Institutional Synergies
Leveraging Institutional Synergies Leveraging ITC’s Institutional Strengths for Competitive Advantage Competitive Advantage for ITC FMCG Businesses Corporate Brand Robust Governance, Systems High Quality Reputation & Processes Talent Pool Cuisine Knowledge: Packaged Foods & Food Tech Globally Acclai
Slide 21: Winner of Several Marquee Awards
Winner of Several Marquee Awards 2024 2024 2024 2024 2024 #1 LEED Platinum Avartana, LEED Zero Gold List 2024 Avartana certification by ITC Grand Chola Water Certification ITC Grand Chola USGBC Welcomhotel Sheraton ITC Ratnadipa Mussoorie New Delhi Condé Nast Traveler Condé Nast Traveler Asia’s 50 B
Slide 22: Hospitality Sector Poised for Growth
Hospitality Sector Poised for Growth 20 20
Slide 23: India's Decade of Outperformance
India’s Decade of Outperformance Growing Affluence & Societal Aspirations India poised to become 3rd largest economy Rising incomes → Higher discretionary spending GDP in USD trillion GDP per Capita (US$) Growth% FY25 F FY29 F 9.3% 9.3% 9.3% 5000 8.9% 10.0% USA Unite d States 29.2 USA Unite d States
Slide 24: Hospitality Industry in a Strong Upcycle
Hospitality Industry in a Strong Upcycle Strong recovery in Indian Hospitality Demand expected to remain well-ahead of supply ADR RevPAR Occupancy Supply CAGR Demand CAGR 64% 12.0% Supply CAGR Demand CAGR 64% 60% 8000 70% 7000 60% 10.0% 10.5% 6000 43% 50% 8.0% 7.1% 5000 6.2% 40% 6.0% 5.5% 4000 11.2%
Slide 25: Key performance highlights
Key performance highlights 23 23
Slide 26: Robust Financial Performance Track Record
Robust Financial Performance Track Record Key Inventory as on 31st Oct’24 Revenue from Operations (INR Cr) 350 0 3103 300 0 2689 ~13,000 250 0 1926 8,910 200 0 7182 1357 1495 6,011 6,746 150 0 1198 5,208 5,689 100 0 5,566 5,533 5,783 500 3,702 3,883 0 FY14 FY16 FY23 FY24 Current FY14 FY16 FY18 FY20
Slide 27: Superior Competitive Performance
Superior Competitive Performance ARR RevPAR +20% +18% +15% +14% FY23 FY24 FY23 FY24 FY23 FY23 FY24 FY24 ITCHotels ITC Hotels Compset India (Luxury + Upper ITCHotels ITC Hotels India Compset (Luxury + Upper (Owned) Upscale + Upscale) (Owned) Upscale + Upscale) Source: CoStar 25 25 25
Slide 28: Performance Metrics: Owned Hotels
Performance Metrics: Owned Hotels ARR, RevPAR and Occupancy (%) Revenue segmentation Owned Keys ARR RevPAR Occupancy 69% 69% Room F&B Others 67% FY24 52% 40% 8% 65% FY23 51% 42% 7% FY20 46% 45% 9% 10,000 12,000 8,200 7,900 5,200 8,000 5,200 6,900 FY19 47% 45% 8% FY19 FY20 FY23 FY24 4,500+ 5000+ 5,50
Slide 29: FY24: Stellar Performance
FY24: Stellar Performance Record High Revenue & Profits Revenue INR 3,103 Cr 15% Y-o-Y EBITDA INR 1,066 Cr 25% Y-o-Y ITC Grand Bharat, Gurugram EBITDA Margin 34% 3% Y-o-Y EBIT INR 765 Cr 37% Y-o-Y ROCE# 20% 400 bps ITC Kohenur, Hyderabad Published Segment Consolidated Financials for FY24 # Propertie
Slide 30: H1 FY25: Strong Performance on a High Base
H1 FY25: Strong Performance on a High Base Revenue INR 1,450 Cr 12% Y-o-Y EBITDA INR 460 Cr 13% Y-o-Y ITC Windsor, Bengaluru EBITDA Margin 32% 42 bps Y-o-Y EBIT INR 304 Cr 14% Y-o-Y Note: Excludes ITC Ratnadipa (launched in FY25) Welcomhotel Bay Island, Port Blair Segment Consolidated Financials for
Slide 31: Strong Ramp-up of Managed Portfolio
Strong Ramp-up of Managed Portfolio 28 Managed Hotels Opened Sharpened Focus | Dedicated Teams in Last 24 Months Accelerated traction in scaling up Managed Portfolio post-Covid No. of Operational Hotels No. of Operational Keys Active Pipeline of ~4000 Keys 7,182 114 Managed Keys to be 11,000+ by FY2
Slide 32: Next Horizon of Growth
Next Horizon of Growth 30 30
Slide 33: Strategy Pillars
Strategy Pillars CONTINUED INVESTMENT CAPITAL TO ENHANCE BRAND ASSET RIGHT DIGITAL FIRST EMPLOYER OF CHOICE PRODUCTIVITY EQUITY Key Differentiators ■ Indigenous Experiences ■ Bouquet of brands catering ■ Smart Revenue ■ Sweating existing assets ■ Strong Talent Pool ■ Signature cuisines to relevant n
Slide 34: Strong Growth Enablers in Place
Strong Growth Enablers in Place Strong Zero Debt Balance Sheet & Cash Generation to accelerate growth Capital Investments → Renovations | on-going Projects | new Greenfields & others - Estimated at c.8-10% of Revenue cumulatively Well positioned to execute selective Inorganic Opportunities - Value a
Slide 35: Driving Capital Efficient Growth
Driving Capital Efficient Growth Owned Hotels ► Significant headroom to drive RevPar growth ► About 20% Inventory < 5 years old, operating at 75% of potential Occupancy levels ► ITC Ratnadipa, Colombo → significant contributor to Revenue & EBITDA going forward Welcomhotel Puri Welcomhotel Bhubaneshw
Slide 36: Robust Growth Pipeline: 46 Hotels with ~4300 Keys
Robust Growth Pipeline: 46 Hotels with ~4300 Keys 1 Hotel 13 Hotels 10 Hotels 18 Hotels 4 Hotels 223 Keys# 1796 Keys 578 Keys 1439 Keys 162 Keys ► Opened 28 Managed Hotels in the past 24 months (Nov 2022 – Oct 2024) ► High Quality of signed pipeline; High salience of Brownfield Assets • > 1 Hotel op
Slide 37: Unlocking Full Potential of Recent Launches
Unlocking Full Potential of Recent Launches ITC Narmada (FY23) ITC Royal Bengal (FY20) WH Bhubaneswar (FY22) ITC Ratnadipa (FY25) Significant contributor Significant headroom for growth to Revenue & EBITDA About 20% Inventory operating at 75% of potential Occupancy levels in the years ahead 35 35
Slide 38: ITC Ratnadipa, Colombo: A Jewel in Colombo's Skyline
ITC Ratnadipa, Colombo One of its Kind Mixed Use Development A Jewel in Colombo’s Skyline 352 Hotel Keys + 132 Luxury Apartments 71,000 sqft. 9 Retail & Office Spaces Signature Dining Destinations 40,000 sqft. Banqueting Spaces Sale of Investment Outlay Substantially Sapphire Residences# underway Co
Slide 39: Sapphire Residences, Colombo
Sapphire Residences, Colombo Unique luxury apartments with interiors designed by Philippe Starck (YOO) Most Exclusive and Spacious Elevated living experience in Sri Lanka Located at epicentre of Galle Face Oceanfront 37 37
Slide 40: Accelerating Growth through Managed Hotels
Accelerating Growth through Managed Hotels Strategic Levers Our Right to Win 5 Decades of Bouquet of Brands Sustainability Hospitality Expertise across Segments Leadership Food & Beverage Smart Revenue Strong Loyalty Mementos by ITC Hotels, Jaipur Supremacy Management & Distribution Robust Processes
Slide 41: Accelerating Growth through Managed Hotels: Mementos
Accelerating Growth through Managed Hotels MEMENTOS Mementos by ITC Hotels, Jaipur Mementos by ITC Hotels, Ekaaya Udaipur MEMORIES AVAILABLE Mementos by ITC Hotels, Jaipur Mementos by ITC Hotels, Ekaaya Udaipur 39 39
Slide 42: Accelerating Growth through Managed Hotels: Welcomhotel
Accelerating Growth through Managed Hotels WELCOMHOTEL Welcomhotel by ITC Hotels, Jim Corbett Welcomhotel by ITC Hotels, The Savoy, Mussoorie ENRICHING EXPERIENCES AWAIT Welcomhotel by ITC Hotels, Hamsa Manali Welcomhotel by ITC Hotels, Jodhpur 40 40
Slide 43: Accelerating Growth through Managed Hotels: Storii
Accelerating Growth through Managed Hotels STORII Storii by ITC Hotels, Jaisalmer Storii by ITC Hotels, Jaisalmer Storii by ITC Hotels, Moira Riviera, Goa EVERY STAY IS A NEW STORY Storii by ITC Hotels Amoha Retreat Storii by ITC Hotels, Devasom Resort & Spa, Kolkata Storii by ITC Hotels, Amoha Retr
Slide 44: Accelerating Growth through Managed Hotels: Fortune
Accelerating Growth through Managed Hotels FORTUNE Fortune Beach Resort ECR Chennai Fortune Resort & Wellness Spa Bhaktapur Nepal Fortune Resort Kalimpong Fortune Park Pushpanjali Durgapur42 42
Slide 45: Accelerating Growth through Managed Hotels: WelcomHeritage
Accelerating Growth through Managed Hotels WELCOMHERITAGE WelcomHeritage Bal Samand Lake Palace WelcomHeritage Cheetahgarh Resort & Spa WelcomHeritage Elysium Resort & Spa, Shimla WelcomHeritage Tadoba Vanya Villas Resort & Spa 43 43
Slide 46: Accelerating Growth through Managed Hotels: Portfolio Premiumisation
Accelerating Growth through Managed Hotels Portfolio Premiumisation High Quality Assets Managed Hotels Portfolio mix (Upscale to Luxury) 6000 42% 45% 39% 40% 5000 33% 35% 29% 4000 30% Managed keys in the premium segment 25% 3000 3.4 X In the next 5 years 20% 2000 2.6 X 15% the premium hotel keys wou
Slide 47: Active Asset Management: Welcomhotel Chennai
Active Asset Management Welcomhotel Chennai 2x RevPar uplift post makeover An Iconic Address, Rejuvenated The Madras of Old, as good as New! The first The trademark 47 Years of Unique prominent “Chola” Iconic Service Boutique Hotel hotel of the Warmth & to the City of Experience region Legacy Chenna
Slide 48: Active Asset Management: Smart Renovations
Active Asset Management Smart Renovations ITC Grand Goa – Fully Renovated ■ Country’s first LEED® Platinum resort ■ Best Wedding Resort at Travel + Leisure India’s Awards 2023 ITC Kakatiya – Renovation Underway | Completion by FY26 ■ Most rooms renovated to contemporary design ■ Renovation of public
Slide 49: Active Asset Management: Fortifying F&B Supremacy
Active Asset Management Fortifying F&B Supremacy Restaurants Portfolio Refreshed ■ Avartana added at ITC Maratha & ITC Maurya ■ Revenue Uplift 2x Avartana Space Optimisation ■ Peshawri Restaurant launched at ITC Kohenur ■ Efficient utilization of available revenue generating area Peshawari Cuisine R
Slide 50: Operational Excellence: Accelerating Path to Profitability
Operational Excellence Accelerating Path to Profitability ITC Kohenur - 274 Keys WH Bhubaneshwar - 107 Keys ITC Narmada - 291 Keys ► Revenue leader in market within ► Revenue leader in market within ► ARR leader in market within 2 years of Launch 2 years of Launch 1 year of launch ► EBITDA Positive
Slide 51: Operational Excellence: Driving Margin Expansion
Operational Excellence Driving Margin Expansion Productivity | Efficiency Raw Material Cost (% of F&B Revenue) Payroll Cost (% of Revenue) 25% 3% ↓ 28% 6% ↓ 22% 22% 23% 22% FY20 FY23 FY24 FY20 FY23 FY24 Energy Cost (% of Revenue) Other Operating Cost (% of Revenue) 3%↓ 2% ↓ 32% 7% 6% 5% 29% 29% FY20
Slide 52: Operational Excellence: High NPS Score & Response Rate
Operational Excellence High NPS Score & Response Rate Superior Guest Experience Listen & Respond Online Ratings One of the Best NPS scores Active feedback monitoring Leadership position maintained in the Industry High Customer Satisfaction Rating Response Rate High Customer Satisfaction Rating > 80
Slide 53: Augmenting Revenue Streams
Augmenting Revenue Streams App based Online Food Luxury Sleep Memorable Members only Delivery/ Takeaway Dining Program Products & Amenities Destination Weddings Business Club Delivering signature cuisines Exclusive access Exquisite offerings, Beach resorts | Palaces | Business Meetings | from celebr
Slide 54: Loyalty & Distribution
Loyalty & Distribution Transparent, Flexible & Easy-to-use Loyalty Program Member base ↑ 2.6x over FY20 One of India’s most transparent, flexible Loyalty led Revenue ↑ 2.6x over FY20 and easy-to-use loyalty programmes 3.5 lakh member additions Strong 100% Earn every year Partnerships Digital Green P
Slide 55: Digitization
Digitization Leveraging Power of Digital Best in Class Mobile App NextGen CRM • Industry Leading Features • Integrated Sales | Marketing | Service • Single window for hotel services • Personalized Marketing State of the art Brand Website Superior Loyalty Platform • Contemporary design and technology
Slide 56: World Class Engaged and Committed Talent
World Class Engaged and Committed Talent Aligned Engaged Committed Talent Management processes enmeshed Engaged Workforce - High Pride & Advocacy Purpose Driven Enterprise with Business imperatives - Triple Bottom Line Competitively Benchmarked Compensation Strong Upstream & Downstream Superlative C
Slide 57: Talent Management
Talent Management Talent Strategy Acquiring, Creating & Developing best in class talent ATTRACTING BUILDING FUTURE READY THE RIGHT TALENT CAPABILITY TALENT Managing talent pipeline in a ITC HMI creating leaders through Building skills and capability for competitive landscape through bespoke training
Slide 58: Talent Management: Culture craft
Talent Management Culture craft Celebrating Diversity, Team work & Innovation Creating lasting value for our people Recognized Guest Focused and fostering a culture of recognition by acknowledging employees’ acts of excellence Diverse Engaged 56 56
Slide 59: ITC Hotels Poised For Next Horizon Of Growth
ITC Hotels Poised For Next Horizon Of Growth Committed to Long-term Value Creation Future Ready Climate Positive Consumer Centric Inclusive Responsible Luxury Strengthen Brand Portfolio ► Bold Sustainability 2.0 agenda ► Signature Cuisine Brands ► Bespoke service offerings Drive Scale & Profitabilit
Slide 60: ITC Hotels Poised for Next Horizon of Growth
ITC Hotels Poised for Next Horizon of Growth 58 58
Slide 61: Annexures
Annexures 59 59
Slide 62: Diversified Customer Base
Diversified Customer Base High Retail salience in Revenue mix +17% +3% 2019-20 2023-24 57% 40% 35% 24% 21% 17% 4% 2% Retail Contracted MICE + Weddings Crew Revenue share from Growing Share of Higher Margin Segments Contracted to Non-Contracted ITC Hotels - a key Beneficiary of rising consumer spendi
Slide 63: Strong Multi-channel Distribution Network
Strong Multi-channel Distribution Network Driving demand through focus on own website and channels Unit Reservations Website and App (33%) (19%) Online Travel Guest Call Centre GDS Agents (16%) (14%) (18%) Details for FY24 61 61
Slide 64: Brand landscape
Brand landscape Operational Pipeline for next 4 years Total Brands Hotels | Keys Hotels | Keys Hotels | Keys 16 | 4687 - | 102 16 | 4789 2 | 181 1 | 223 3 | 404 26 | 2848 13 | 1796 40 | 4644 6 | 149 10 | 578 16 | 727 55 | 4099 18 | 1439 73 | 5538 35 | 1001 4 | 162 39 | 1163 Total 140 | 12965 46 | 43
Slide 65: Recent openings in Managed Hotels
Recent openings in Managed Hotels S. No Hotel Name City Brand Keys 1 Welcomhotel Jim Corbett Jim Corbett Welcomhotel 62 2 Fortune Inn Walkway Mall Haldwani Haldwani Fortune 58 3 WelcomHeritage Parv Vilas Solan WelcomHeritage 55 4 Mementos Udaipur Udaipur Mementos 117 5 Fortune Resort Kalimpong Kalim
Slide 66: Thank You
ix ITC HOTELS RESPONSIBLE LUXURY THANK YOU 64